The Pakistan Stock Exchange (PSX) closed Thursday with significant gains, driven by positive economic factors and optimism surrounding the IMF’s approval of the $7 billion Extended Fund Facility (EFF).
Key Factors
- Moody’s Upgrade: Pakistan’s sovereign credit rating was upgraded by Moody’s, boosting investor confidence.
- IMF Expectations: The anticipated approval of the EFF by the IMF executive board contributed to the positive market sentiment.
- Economic Indicators: Falling bond yields and progress in bridging the external financing gap also supported the market.
Market Performance
The KSE-100 index rose by 356.88 points, or 0.46%, to settle at 78,349.66. Key sectors, including automobile, power, banking, and fertilizer, drove the gains.
Trading Activity
Trading volumes decreased slightly to 599.8 million shares. The total value of shares traded was Rs20.4 billion. 449 companies’ shares were traded, with 227 stocks closing higher, 166 declining, and 56 remaining unchanged.
Foreign Investors
Foreign investors were net buyers of shares worth Rs122.8 million.
Sectoral Performance
- Automobiles: Increased demand and production capabilities boosted optimism.
- Power Generation: Falling bond yields improved cost of capital.
- Banking: Expectations of favorable monetary policy adjustments supported gains.
Outlook
The approval of the IMF’s EFF is expected to bolster Pakistan’s foreign exchange reserves and provide a buffer against external financial shocks. Combined with the Moody’s ratings upgrade, this could maintain the PSX’s upward momentum.
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